📊 CSW Key Takeaways
Is Csw Industrials, Inc.. (CSW) a Good Investment?
CSW Industrials demonstrates strong fundamental growth with 23.3% revenue expansion and exceptional free cash flow generation of $132.4M. However, the 20% YoY decline in diluted EPS despite robust revenue growth signals concerning margin compression or operational efficiency issues that require monitoring. The company maintains healthy liquidity and moderate leverage, but the disconnect between top-line growth and earnings warrants cautious optimization.
CSW Industrials shows solid fundamental quality with double-digit revenue growth, strong gross and operating margins, and excellent cash conversion as reflected in its 18.0% free cash flow margin. Financial health appears sound given a 2.36x current ratio and manageable debt-to-equity, but the flat year-over-year net income and elevated long-term debt suggest some moderation in overall conviction.
Csw Industrials, Inc.. Key Strengths (CSW)
- Strong revenue growth of 23.3% YoY with $1.1B top line
- Excellent free cash flow generation of $132.4M (12.2% FCF margin) exceeding capex needs significantly
- Solid liquidity position with 2.60x current ratio and 1.23x quick ratio
- Healthy gross margin of 41.9% indicating product pricing power in adhesives/sealants sector
- Moderate debt/equity ratio of 0.80x showing prudent leverage management
- Capital-light business model with minimal capex ($17.3M) relative to operating cash flow
- Double-digit revenue growth with healthy 42.3% gross margin and 16.7% operating margin
- Strong free cash flow generation of $139.21M supports flexibility and underlying earnings quality
- Solid liquidity profile with a 2.36x current ratio and positive balance between assets and liabilities
CSW Stock Risks: Csw Industrials, Inc.. Investment Risks
- Significant disconnect: net income declined 0.7% YoY while revenue grew 23.3%, indicating margin compression or operational cost inflation
- Diluted EPS fell 20% YoY despite strong revenue growth, suggesting either margin pressure or material share dilution
- Interest coverage ratio not available, preventing assessment of debt service capacity and refinancing risk
- Low cash position of $33.8M relative to $839.8M long-term debt leaves limited financial flexibility
- High insider trading activity (20 Form 4 filings in 90 days) may indicate concentrated selling or governance concerns
- Net income declined slightly year over year despite higher revenue, which may indicate cost pressure or mix headwinds
- Long-term debt of $768.30M is meaningful relative to cash of $40.24M and should be monitored closely
- ROE of 8.6% and ROA of 4.0% are only moderate, suggesting returns on capital are not yet exceptional
Key Metrics to Watch
- Gross margin trend - monitor for further compression indicating pricing power loss or input cost pressures
- Net income and EPS growth trajectory - critical to verify if decline was temporary or structural
- Interest coverage ratio and debt service metrics - essential given moderate leverage and low cash position
- Operating cash flow sustainability - ensure $149.7M can be maintained with revenue growth
- Cash balance accumulation - monitor rebuilding of liquidity given low $33.8M position
- Net income and operating margin progression
- Debt reduction and operating cash flow consistency
Csw Industrials, Inc.. (CSW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.60x current ratio provides a solid financial cushion.
CSW Profit Margin, ROE & Profitability Analysis
CSW vs Market Sector: How Csw Industrials, Inc.. Compares
How Csw Industrials, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Csw Industrials, Inc.. Stock Overvalued? CSW Valuation Analysis 2026
Based on fundamental analysis, Csw Industrials, Inc.. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Csw Industrials, Inc.. Balance Sheet: CSW Debt, Cash & Liquidity
CSW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Csw Industrials, Inc..'s revenue has grown significantly by 73% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.52 reflects profitable operations.
CSW Revenue Growth, EPS Growth & YoY Performance
CSW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $193.6M | $10.3M | $0.62 |
| Q2 2026 | $227.9M | $36.1M | $2.26 |
| Q1 2026 | $226.2M | $38.6M | $2.43 |
| Q3 2025 | $175.0M | $9.2M | $0.59 |
| Q2 2025 | $203.7M | $30.1M | $1.93 |
| Q1 2025 | $203.4M | $30.6M | $1.97 |
| Q3 2024 | $171.1M | $9.2M | $0.59 |
| Q2 2024 | $191.2M | $24.3M | $1.57 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Csw Industrials, Inc.. Dividends, Buybacks & Capital Allocation
CSW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Csw Industrials, Inc.. (CIK: 0001624794)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CSW
What is the AI rating for CSW?
Csw Industrials, Inc.. (CSW) has a Combined AI Grade of A from Claude (A) and ChatGPT (A) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CSW's key strengths?
Claude: Strong revenue growth of 23.3% YoY with $1.1B top line. Excellent free cash flow generation of $132.4M (12.2% FCF margin) exceeding capex needs significantly. ChatGPT: Double-digit revenue growth with healthy 42.3% gross margin and 16.7% operating margin. Strong free cash flow generation of $139.21M supports flexibility and underlying earnings quality.
What are the risks of investing in CSW?
Claude: Significant disconnect: net income declined 0.7% YoY while revenue grew 23.3%, indicating margin compression or operational cost inflation. Diluted EPS fell 20% YoY despite strong revenue growth, suggesting either margin pressure or material share dilution. ChatGPT: Net income declined slightly year over year despite higher revenue, which may indicate cost pressure or mix headwinds. Long-term debt of $768.30M is meaningful relative to cash of $40.24M and should be monitored closely.
What is CSW's revenue and growth?
Csw Industrials, Inc.. reported revenue of $1.1B.
Does CSW pay dividends?
Csw Industrials, Inc.. pays dividends, with $18.0M distributed to shareholders in the trailing twelve months.
Where can I find CSW SEC filings?
Official SEC filings for Csw Industrials, Inc.. (CIK: 0001624794) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CSW's EPS?
Csw Industrials, Inc.. has a diluted EPS of $6.70.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CSW's fundamental grade?
Based on our AI fundamental analysis in June 2026, Csw Industrials, Inc.. has a A grade with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CSW stock overvalued or undervalued?
Valuation metrics for CSW: ROE of 10.7% (sector avg: 15%), net margin of 10.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is CSW's AI grade for 2026?
Our dual AI analysis gives Csw Industrials, Inc.. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CSW's free cash flow?
Csw Industrials, Inc..'s operating cash flow is $149.7M, with capital expenditures of $17.3M. FCF margin is 12.2%.
How does CSW compare to other Market stocks?
Vs Default sector averages: Net margin 10.4% (avg: 12%), ROE 10.7% (avg: 15%), current ratio 2.60 (avg: 1.8).